State Bank of India comes under attack on minimum balance penalty

I understand that the bank is having financial difficulties but this is not how they are going to make up the deficit.

Bhopal: K.K. Sethi, a retired bureaucrat, was in for a rude shock today when the State Bank of India (SBI) charged him Rs. 115 on the ground that he was not maintaining the mandatory minimum balance during the month.

Narrating his woe, Sethi told Newsroom24x7 that all the time, he had maintained Rs. 1,65,000 in his account but it was a sweep account where they send the money in excess of a limit and bring it back when it falls short of that limit. In his case the limit is Rs. 25,000, which is much in excess of what is the minimum balance required.

Instead of transferring the amount back, they want to tax me for no fault of mine, Sethi said adding “I understand that the bank is having financial difficulties but this is not how they are going to make up the deficit.” The former bureaucrat, known for his upright image and no-nonsense stance throughout his illustrious career, described the bank’s action as “downright illegal and immoral”.

KK Sethi, a retired IAS officer, is highly respected for his commitment to the larger cause of society. He has held several important posts and was Chief Secretary Manipur and President Board of Revenue in Madhya Pradesh. As Commissioner for Linguistic Minorities, he had presented to the President of India, the forty-fourth Annual Report under Article 350- B (2) of the Constitution. For the implementation of the constitutional provisions and Nationally Agreed Scheme of Safeguards provided to linguistic minorities, the report recommends action to be taken by the Central Government and various State Governments / Union Territory Administration, to assuage the feelings of the linguistic minorities.